Tuesday, February 6, 2018

Indian rupee ended unchanged on Monday compared to its previous close as investors remained cautious ahead of Reserve Bank of India’s (RBI’s) monetary policy meeting to be start from tomorrow. Traders also remained pessimistic with Fitch Ratings’ statement that high debt burden of the government constrains India’s rating upgrade, after Finance Minister Arun Jaitley projected a fiscal deficit of 3.5 percent of GDP against the earlier target of 3.2 percent. Meanwhile, Arun Jaitley said that the economy has entered into a phase of consolidation after a series of structural reforms which were initiated in the past two years.

On the global front, US dollar paused on Monday after rebounding at the end of last week, when a strong jobs report suggested the currency's weakness might have gone too far, too fast.